Newcore Gold Announces Positive Updated Preliminary Economic Assessment for the Enchi Gold Project, Ghana

After-Tax NPV5% of US$212 million, After-Tax IRR of 42% at $1,650/oz Gold, Average Annual Gold Production of 104,000 ounces in years 2 through 5

June 8, 2021 - Vancouver, BC – Newcore Gold Ltd. ("Newcore" or the "Company") (TSX-V: NCAU, OTCQX: NCAUF) is pleased to announce the positive results of an updated independent Preliminary Economic Assessment ("PEA") completed for the Company’s 100%-owned Enchi Gold Project ("Enchi" or the "Project") in Ghana. The PEA was prepared by BBA E&C Inc. ("BBA") in accordance with National Instrument 43-101 ("NI 43-101") and contemplates a technically simple, open pit mine and heap leach operation processing 6.6 million tonnes per annum ("mtpa") utilizing contract mining. The PEA also reflects an updated, pit constrained, Inferred Mineral Resource of 70.4 million tonnes ("Mt") grading 0.62 grams per tonne gold ("g/t Au") containing 1.4 million ounces gold. Only 20,195 metres of drilling from the ongoing 66,000 metre drill program was included in the updated Mineral Resource Estimate. All currencies are reported in U.S. dollars unless otherwise specified.

PEA Highlights

-          Strong Project Economics with Low Capital Intensity

• At a gold price of $1,650/oz: $333 million pre-tax net present value discounted at
• 5% ("NPV5%") and a 54% pre-tax internal rate of return ("IRR"), $212 million after-tax NPV5%, and a 42% after-tax IRR.
• At a gold price of $1,850/oz: $471 million pre-tax NPV5% and a 69% pre-tax IRR,
• $302 million after-tax NPV5%, and a 54% after-tax IRR.
• Initial capital costs estimated at $97 million, with a short after-tax payback of 2.3 years.

-          Establishing the Potential for a Robust Project with Significant Growth Potential

• Average annual gold production in years two through five of 104,171 ounces gold;
• 983,296 ounces gold recovered over an 11-year life of mine ("LOM").
• LOM strip ratio of 2.1 to 1, mined grade of 0.57 g/t gold and recovery of 79%.
• LOM operating costs (1) estimated at $923/oz of gold, cash costs (2) estimated at $1,043/oz of gold, LOM all-in sustaining costs (AISC) (3) estimated at $1,066/oz of gold.

-          Updated Mineral Resource Estimate, Including an Initial Resource at Kwakyekrom

• The PEA includes an updated Inferred Mineral Resource Estimate of 70.4 Mt grading
• 0.62 g/t Au containing 1.4 million ounces gold.
• Incorporates 20,195 metres of drilling completed at Enchi in 2020 and early 2021.

-          Additional Exploration Upside from Ongoing 66,000 Metre Drill Program at Enchi

• 46,000 metres of additional drilling was not included in the Mineral Resource Estimate.
• Exploration and drilling activities continue on the Enchi Gold Project, with drilling testing a series of highly prospective targets directed at extending the existing Mineral Resources along strike and down dip, further drilling of advanced gold targets across the 216 km2 property, and first pass testing of multi-kilometre scale gold anomalies.
• Recent drilling results not included in the PEA Mineral Resource Estimate have intersected wide zones of oxide gold mineralization as well as high-grade core structures including 5.40 g/t Au over 9.0 m, 5.78 g/t Au over 7.0 m, 6.25 g/t Au over 6.0 m, 3.31 g/t Au over 9.0 m, and 2.95 g/t Au over 9.0 m and remain open along strike and to depth.

Note: All currencies in this news release are reported in U.S. dollars unless otherwise specified. Base case parameters assume a gold price of $1,650/oz. NPV calculated as of the commencement of construction and excludes all pre-construction costs. Cash costs and AISC are non-GAAP financial measures (see cautionary language).

(1)   Operating costs consist of mining costs, processing costs, and on-site G&A.

(2)   Cash costs consist of operating costs plus treatment and refining charges, and royalties.

(3)   AISC consists of cash costs plus sustaining capital (excluding closure costs and salvage value).

Luke Alexander, President and CEO of Newcore stated, "The updated PEA is a notable milestone for Newcore as we look to highlight the value of not only the exploration upside across the district scale property but also the economic value of the current resources that we have defined on the Project. The PEA results indicate that Enchi is an economically robust, low capital intensity, heap leach project with an after-tax NPV5% of $212 million and after-tax IRR of 42% at a gold price of $1,650 per ounce. Importantly, the economics also highlight the quick payback of capital, approximately 2 years after first gold pour. We believe that the Project and economics have a tremendous amount of upside from resource expansion both from shallow, near surface oxide mineralisation, but also from the higher-grade structures that we are starting to define at depth. This PEA only includes 20,195 metres of drilling from our ongoing 66,000 metre drill program, and only incorporates the shallow, open pit oxide material defined to date, with the first deeper drilling on the project underway to define the potential for resource growth at depth. We are excited to continue to define the district-scale, multi-million-ounce potential at Enchi and build off the underpinning of value that the updated PEA highlights."

Greg Smith, Vice President of Exploration of Newcore stated, "The PEA includes an updated Mineral Resource Estimate which has increased the pit constrained Inferred Mineral Resource to 70.4 Mt grading 0.62 g/t Au and containing 1.4 million ounces gold. The expansion was accomplished by extending the existing resources along strike and down dip, along with the inclusion of an initial resource estimate at Kwakyekrom which is interpreted to be an extension of the same structure hosting the Nyam Gold Deposit three kilometres to the north. All mineral resources remain open along strike and in all cases are defined by kilometre-scale gold-in-soil anomalies on surface and geophysical anomalies which characterize the structural trends. The inclusion of a shallow oxide resource at Kwakyekrom highlights the potential to discover additional deposits across the Project. We will continue to work towards defining the district scale potential of the Enchi Gold Project through our ongoing 66,000 metre drill program."

This updated PEA for the Enchi Gold Project was prepared by BBA, in accordance with

NI 43-101 Standards of Disclosure for Mineral Projects, and a technical report for the PEA will be filed by Newcore on SEDAR within 45 days of this news release.

The PEA is preliminary in nature, includes Inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

PEA Overview and Financial Analysis

The Enchi Gold Project is located in southwest Ghana, with the Project’s 216 km2 land package covering approximately 40 kms of Ghana’s prolific Bibiani Shear Zone, a gold belt which hosts several multi-million-ounce gold deposits. Enchi is located 50 km to the south of Kinross’ Chirano gold mine which produced approximately 165,000 ounces of gold in 2020.

The updated PEA contemplates an open pit, heap leach operation with a low strip ratio using contract mining and processing 6.6 mtpa (approximately 18,000 tonnes per day). The heap leach facility will be built in three phases, with excess capacity available. Heap leach feed material will be trucked from four deposits (Sewum, Boin, Nyam, Kwakyekrom) to a central crushing and heap leach facility which will be located near Sewum, the largest currently defined deposit at Enchi.

Table 1 - Important Parameters of the Updated PEA

1. Operating costs consist of mining costs, processing costs, and on-site G&A.
2. Cash costs consist of operating costs plus treatment and refining charges, and royalties.
3. AISC consists of cash costs plus sustaining capital (excluding closure costs and salvage value).
4. Sustaining Capital Cost excludes closure costs and salvage value. Includes $6.7 million in each of years three and six for heap leach pad expansion.

Table 2 - Project Economics Summary

Chart 1 - Production and Cost Profile by Year

To view entire original news in English language, please follow the link:

https://newcoregold.com/site/assets/files/5703/2021_06_08_-_ncau_nr_-_enchi_updated_pea_-_sedar.pdf

COVID-19 Protocols

Newcore’s first priority is the health and safety of all employees, contractors, and local communities. The Company is following all Ghana guidelines and requirements related to COVID-19. The Company has implemented COVID-19 protocols for its ongoing drill program consisting of the mandatory use of personal protective equipment (including facemasks for all employees), maintaining social distancing, frequent hand washing, and daily temperature checks at the start of each shift.

Newcore Gold Best Practice

Newcore is committed to best practice standards for all exploration, sampling and drilling activities. Drilling was completed by an independent drilling firm using industry standard RC and Diamond Drill equipment. Analytical quality assurance and quality control procedures include the systematic insertion of blanks, standards and duplicates into the sample strings. Samples are placed in sealed bags and shipped directly to Intertek Labs located in Tarkwa, Ghana for 50 gram gold fire assay. 

Qualified Person

Mr. Gregory Smith, P. Geo, Vice President of Exploration of Newcore, is a Qualified Person as defined by NI 43-101, and has reviewed and approved the technical data and information contained in this news release. Mr. Smith has verified the technical and scientific data disclosed herein and has conducted appropriate verification on the underlying data including confirmation of the drillhole data files against the original drillhole logs and assay certificates.

About Newcore Gold Ltd.

Newcore Gold is advancing its Enchi Gold project located in Ghana, Africa’s largest gold producer (1). The Project currently hosts an Inferred Mineral Resource of 1.4 million ounces of gold at 0.62 g/t. Newcore Gold offers investors a unique combination of top-tier leadership, who are aligned with shareholders through their 32% equity ownership, and prime district scale exploration opportunities. Enchi’s 216 km2 land package covers 40 kilometres of Ghana’s prolific Bibiani Shear Zone, a gold belt which hosts several 5 million-ounce gold deposits, including Kinross’ Chirano mine 50 kilometers to the north. Newcore’s vision is to build a responsive, creative and powerful gold enterprise that maximizes returns for shareholders.

(1) Source: Production volumes for 2019 as sourced from the World Gold Council.

Über BBA

BBA bietet seit fast 40 Jahren ein breites Spektrum an beratenden Ingenieurdienstleistungen an. Experten aus den Bereichen Ingenieurwesen, Umwelt und Inbetriebnahme arbeiten zusammen, um die Bedürfnisse von industriellen und institutionellen Kunden schnell und präzise zu ermitteln. Anerkannt für seine innovativen, nachhaltigen und zuverlässigen Lösungen, zeichnet sich das Unternehmen durch seine Expertise in den Bereichen Bergbau und Metall, Energie, Biokraftstoffe sowie Öl und Gas aus. BBA verfügt über 14 Niederlassungen in ganz Kanada, um Kunden vor Ort zu unterstützen und Präsenz zu zeigen.

On Behalf of the Board of Directors of Newcore Gold Ltd.

Luke Alexander

President, CEO & Director

For further information, please contact:

Mal Karwowska | Vice President, Corporate Development and Investor Relations

+1 604 484 4399

[email protected]

www.newcoregold.com 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This news release includes statements that contain "forward-looking information" within the meaning of the applicable Canadian securities legislation ("forward-looking statements"). All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always using phrases such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: timing of completion of a technical report summarizing the results of the PEA; the development, operational and economic results of the PEA, including cash flows, capital expenditures, development costs, extraction rates, recovery rates, mining cost estimates; estimation of mineral resources; statements about the estimate of mineral resources; magnitude or quality of mineral deposits; anticipated advancement of the Enchi Gold Project mine plan; future operations; future exploration prospects; the completion and timing of future development studies; results of our ongoing drill campaign; anticipated advancement of mineral properties or programs; future exploration prospects; and the future growth potential of Enchi.

These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business. The assumptions underlying the forward-looking statements are based on information currently available to Newcore. Although the forward-looking statements contained in this news release are based upon what management of Newcore believes, or believed at the time, to be reasonable assumptions, Newcore cannot assure its shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended.  Forward-looking information also involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others: risks related to interpretation of metallurgical characteristics of the mineralization, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, uninsured risks, regulatory changes, delays or inability to receive required approvals, taxes, mining title, the speculative nature of the Company’s business; the Company’s formative stage of development; the Company’s financial position; possible variations in mineralization, grade or recovery rates; actual results of current exploration activities; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold and other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, unusual or unexpected geological formations); the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); and title to properties. 

Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

Non-GAAP Measures

This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS"), including cash costs and AISC per ounce of gold. Non-GAAP measures do not have any standardized meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures employed by other companies. We believe that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate our performance. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.